Expands Healthcare and Insurance Payer Capabilities
DALLAS, April 28 /PRNewswire-FirstCall/ -- Affiliated Computer
Services, Inc. (NYSE: ACS) today announced an agreement to acquire CompIQ
Corporation (CompIQ), an Irvine, California-based provider of workers'
compensation claims review, re-pricing and software solutions for $22
million, plus contingent payments based on future financial performance.
The transaction will be funded with a combination of cash on hand and
borrowings under ACS' existing credit facility. The acquisition is expected
to close in May 2008, subject to customary conditions.
CompIQ is a national provider of medical bill review and
cost-containment services for the workers' compensation, group health and
liability insurance industries. Utilizing its proprietary web-based
software, IQReview, CompIQ enables clients to save money and increase
operating efficiency by re-pricing medical bills in accordance with usual
and customary rates, state and hospital fee schedules and preferred
provider organization discounts.
"This acquisition demonstrates our commitment to helping our clients
manage their insurance and healthcare costs by providing technology-enabled
medical bill review and recovery services," said Tom Blodgett, group
president of ACS Business Process Solutions. "The addition of CompIQ gives
us capabilities we do not possess today and helps differentiate ACS as a
leading provider of responsive, reliable and flexible solutions to the
healthcare and insurance payer markets."
CompIQ's trailing twelve month revenue for the period ending March 31,
2008, was approximately $17 million. The business will be known as ACS
CompIQ and will continue to be managed by CompIQ's existing executive team,
adding approximately 130 employees to ACS operations.
"The combination of ACS and CompIQ increases our ability to penetrate
the bill review market," said Art Zeiner, Jr., founder and chief executive
officer of CompIQ. "ACS will be able to leverage our industry expertise to
provide end-to-end audit, bill review and recovery services, and we will be
able to cross sell the full suite of ACS services to our existing clients.
We look forward to helping ACS meet its long-term growth objectives, not
only by providing state-of-the-art administrative services, but also by
enabling our clients to manage their overall healthcare, insurance and
operating costs."
CompIQ was founded in 1997 and has become the premier national provider
of medical bill review software and services to the workers' compensation,
group health and liability insurance industry. It developed the first
paperless workflow for medical bill review, incorporating an innovative
web-based tool that allows claims professionals to view medical bills and
re-pricing information from their desktop without exiting their claim
management software. CompIQ is also an expert in the development of
electronic data interface for integration, offering a wide variety of
software applications used in the management and adjudication of workers'
compensation claims. In addition to its software solutions, CompIQ provides
customized offerings designed to fit the unique requirements of every
cost-containment program.
ACS, a global FORTUNE 500 company with 62,000 people supporting client
operations reaching more than 100 countries, provides business process
outsourcing and information technology solutions to world-class commercial
and government clients. The company's Class A common stock trades on the
New York Stock Exchange under the symbol "ACS." Learn more about ACS at
http://www.acs-inc.com.
The statements in this news release that do not directly relate to
historical facts constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements
are subject to numerous risks and uncertainties, many of which are outside
the Company's control. As such, no assurance can be given that the actual
events and results will not be materially different than the anticipated
results described in the forward-looking statements. Factors could cause
actual results to differ materially from such forward-looking statements.
For a description of these factors, see the company's prior filings with
the Securities and Exchange Commission, including our most recent filing.
ACS disclaims any intention or obligation to revise any forward-looking
statements, whether as a result of new information, future event, or
otherwise.
SOURCE Affiliated Computer Services, Inc.
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Related links:
http://www.acs-inc.com
CONTACT:
Investors, Jon Puckett, Vice President,
Investor Relations, +1-214-841-8281, jon.puckett@acs-inc.com, or
Media, Tom Clary, Director, Corporate Communications,
+1-214-841-8110, tom.clary@acs-inc.com, all of Affiliated
Computer Services, Inc.
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